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The Vietnamese economy is visibly booming as evidenced by the increasing demands for luxury real estate assets both in the country’s major and coastal cities. Over the next 10 years, it is estimated that the residential property market in this Southeast Asian nation will surge on a rapid pace, fuelled by a population eager to get a taste of the good life.

Premium ownership is mostly what these increasingly moneyed Vietnamese are after and together with foreigners willing to invest on the emerging economy, such a dynamic demography fans the fire needed for the property luxe market to explode.

The consensus among industry analysts is that Vietnam is well on its way to compete strongly with market biggies like Thailand and China, Mansion Global reported.

“The general feeling is (Vietnam) will catch up within the next five or 10 years,” the publication said, citing the projections issued recently by property observers.

Experts paint the rosy pictures on the back of the influx of offshore investments seen in recent years in the high-end real estate sector. In addition, analysts expressed confidence that the market will further grow, set to be driven by a young population that the report described as “dynamic entrepreneurial … whose wealth is growing rapidly.”

The Economy Heading North

Mansion Global likewise pointed to Vietnam’s economy that appears to gain its most robust status in the last 10 years. The nation’s GDP registered a 7.38 percent climb, year-on-year, that to date is the most impressive yet in the current decade.

As testament to this ascent, Vietnam is witnessing premium real estate assets literally flying off the shelves. Luxurious villas and landed homes are getting “sold out in matter of days,” the report said.

These are scenarios playing out not only in Hanoi and Ho Chi Minh City but also in developing locations. “Luxury real estate activity is heating up in the coastal cities of Danang and Nha Trang, beach towns like Ho Tram, as well as Phu Quoc Island,” the same report pointed out.

External Funds Flowing In

Also, foreign investments play a key role in propping up the local property market (and firing up the economy in the process). The observed surge in foreign ownership was in large part due to Vietnam’s decision to allow acquisition of leasehold property, and the pot is further sweetened with renewable terms of 50 years.

Foreign buyers looking to own condominium units or landed homes were also comforted by the ownership revisions implemented by the government starting in 2015. For condo purchases, foreigners are assured of securing up to 30 percent of a unit under their name while for lander properties the threshold has been set at 10 percent.

And most notably, foreign nationals find the Vietnamese property market tempting due to the relatively cheaper price tags. To put into perspective, a villa in Vietnam is surely more affordable than that in Thailand. Or getting a condo unit in Hanoi will not break the bank as opposed to doing the same in Hong Kong or Singapore, where property values are grossly inflated.